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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 48 - Federal Acquisition Regulations System |
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Chapter 9 - Department of Energy |
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SubChapter E - General Contracting Requirements |
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Part 928 - Bonds and Insurance |
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Subpart 928.3 - Insurance |
§ 928.370 - Service-type insurance policies.
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928.370 Service-type insurance policies.
(a) Service-type insurance policies are cost-reimbursement type contracts or subcontracts in which the insurer provides claim and loss adjustment services on a cost reimbursement basis, which satisfies state and Federal insurance requirements.
(b) Service-type insurance policies may be used with contracting officer approval, when one or more of the following conditions are present -
(1) Pure risk commercial insurance is not available or, if available, cost is not considered reasonable;
(2) Inherent risks in the contract are new and a part of the process of commercialization;
(3) The service-type insurance is needed to implement jointly funded projects; or
(4) The service-type insurance arrangement is considered in the Government's best interest.
[61 FR 41708, Aug. 9, 1996, as amended at 74 FR 36366, July 22, 2009]